This week or last week indeed, we saw prices on the rise again overall, so there’s a definitive trend upwards over the past couple of weeks, and this is going to have a fairly adverse impact on those customers that haven’t yet put any October start date contracts to bed.
There are a number of drivers for why prices have continued to rise. To start off with there was the continued impact of reduced imports from Norway at the beginning of the week. This has been something that’s been pushing prices up over the past month.
We’ve also seen a week Pound and that usually helps push prices as speculators invest in UK or cheap UK power. Also, as the week wrapped up, we could see the oil prices increases on the back of reduced inventories in the US, which is beginning to impact prices in the longer term.
Another key factor, particularly affecting power prices, rather than gas, has been an announcement in France that additional checks, safety checks, have to be undertaken across the whole fleet. This is expected to result in a curtailment in output in France for an unspecified and unknown period, and this is creating some jitters in the marketplace, as it could impact the amount of energy that can be connected to the UK though the interconnector. It could impact European wide prices.
So all in all, we’re seeing prices on the increase. Further out on the curve, maybe not so much but certainly across the next 6 months to 12 months prices have gone up sufficiently to impact October and probably April around prices.
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